Found 242 Articles for Finance

Business faces some challenges and they need various plans to improve their financial conditions. Challenges may relate to cash, less profits, debts etc. to improve their financial conditions they need to sell their assets.Spin off and divestitures are two such procedures that help business. People sometimes confuse terms like selling and distributing but they differ with their objectives and principles.Spin offA new company is created by selling some of parent company shares is called spinoff. This newly formed company has its own management and rules and technical support will be given by the parent company, if needed.Based on the need ... Read More

Before going for a spinoff and split off. Let us get an idea about Divestiture. Divestiture is nothing but selling a part of a division to create a separate company or another company. It is called the process of divestment.Divestiture can be spin -off, split – off, split-up, equity carve – out etc. commonly used forms of divestiture are spin-off and split-off. Spin-off refers to business division, which becomes independent after separation. In the split off company holds some shares in the subsidiary.Spin-offSplit off is a type of divestiture where a part of the business is disjoined and creates a ... Read More

Before going for financial synergy, let us understand the word synergy which is commonly used in merger and acquisition. Synergy can be understood as, the combined value and performance of a merged company is always greater than the value and performance of individual companies (which are merged).Synergy can be formulated as below −                     Value of merged companies > value of individual companiesLet say two companies, X and Y are merged, now synergy can be formulated as$$\mathrm{Value\:of\:(X+Y)>\:Value\:of\:X\:+\:Vale\:of\:Y}$$In both, financing activities and operating activities synergies can arise the following −Financial synergy − Arises ... Read More

Performance and value of a merged company in more than their individual value and performance is called synergy. Let us see the buyer’s perspective, it influences the maximum price they pay for the company. Let us see the seller’s perspective, favoring a higher purchase price. Important point to keep in mind is that synergies vary from one combination to another business.Revenue synergy results in generating more sales for a combined company (after merger) than the companies which are able to generate individually (before merger). If a company acquires another company (its competitor), then, both the companies can increase their client ... Read More

Concept of synergy is that the performance and value of combined companies is greater than individual performance and value. Merger is called synergy merger, if companies merge to create higher efficiency.Factors which contribute to the synergy are revenue, technology, cost reduction and talent. Synergy can also be done in products by cross selling the new products to increase their revenues. Sometimes, synergy can adversely affect, if the merger is poorly executed and has over optimism.TypesThe types of synergies are explained below −Revenue synergy − In this synergy, the companies will go for merger and acquisition to increase their sales by ... Read More

Intellectual property comprises patents, trade secrets, trademarks and copyrights. In this we see about patents and trade secrets. Though both the words have a lot in common with new ideas, innovativeness etc. They differ from each other in some aspects like patent information can be shared where trade secret information can’t be shared. There are many more. In this we see the overview of both and their differences.PatentThe original author or the person who registered first will get an exclusive right for a limited period of time on claimed matter. Patents act as a shield to the author, it prevents ... Read More

The term intellectual property tells about different types of legal rights. The word intellectual property covers different areas like trademarks, copyright, design and patents. Though all the four look the same or used in the same context (in general), every word differs from another in many ways.In this let us see the overview and differences between patent and trademark.PatentPatent is a legal right granted by respective government authorities to the original owner or author who applied first. This right is useful from others in making, using, selling for a timeframe. To get this right the author has to register with ... Read More

Ichimoku cloud is a technical analysis technique that uses the Kijun-sen, or base line, as an indicator and as a component of the Ichimoku Kinko Hyo method of technical analysis.It provides the central value of all the periods being calculated, mostly the number is 26, and as such, it is a good predictor of short- to medium-term price momentum in the short to medium range. When coupled with the other components of the Ichimoku cloud, the indicator may be used to find trading opportunities.ExampleKey Points BrieflyThe Kijun-sen, which literally translates as "base line, " is the midpoint of the 26- ... Read More

A penny stock is a stock in a tiny business that trades for less than $5 a share, and it is often referred to as such. Although some penny stocks are traded on big exchanges such as the New York Stock Exchange (NYSE), the vast majority of penny stocks are traded over-the-counter (OTC) via the electronic OTC Bulletin Board (OTCBB) or through the privately held OTC Markets Group.Key Points BrieflyIn the financial world, a penny stock is a stock of a tiny business that usually trades for less than $5 per share.Although some penny stocks are traded on big exchanges ... Read More

When we talk about the labour market, we're talking about the supply and demand for labour. Employees offer the supply, and employers provide the demand in this market. It is a critical component of every economy, and it is intimately connected to the markets for capital, commodities, and services, among other things.Key Points BrieflyIt is the supply of and demand for work that is referred to as the labour market, in which employees give the supply and employers provide the demand for labour.There are two levels of analysis to consider when looking at the labour market: the macroeconomic and the ... Read More